XXXVI, No 23, 03/12/2018

South Africa torments OEMs with new BEE sector code for the defence sector

South Africa’s Department of Trade and Industry has revised the country’s broad-based BEE code for the defence sector. The code requires companies to procure at least 60 percent of their defence materials and technologies from local producers. The black ownership sub-contract target is now 30 percent instead of 25 percent. The code also requires foreign contractors to place 75 percent of their contractual obligations under the defence industrial participation (DIP) programme with BBBEE-compliant suppliers.